Hey, it's Daniel here and welcome to part three of our free Amazon PPC course. In this part, we're going to talk about how to scale your ads on Amazon, how to scale with Amazon PPC, meaning how to grow your sales as most as possible through great Amazon, PPC advertising. And specifically, we're going to talk about like the method to make this happen. And then the key elements you need to improve and work on to be able to scale farther and farther. So there's quite a lot to this and I'm going to lay it out for you really high level. So you understand what it looks like, and you can scale more effectively, more efficiently with your PPC on Amazon. Now, if you like this or liking this part, um, this program, this course so far, and you're in part three now, then you can subscribe to my channel as well because, uh, I release these sort of videos frequently, and they can really help you with your business on Amazon private label. So with that being said, let's just dive right in, hop on over to my computer here and get started on part three.
Okay. So now let's start with the most common misconception with Amazon PPC. You might think, well, this is the same thing that we've covered the most common mistake and the most common issue, but now I'm talking about the most common, like false belief that actually costs us a lot of, lot of, um, issues that basically causes a lot of mistakes as well. And, uh, prevents sellers from being successful with PPC. And the most common misconception is believing that ads, so PPC, works in isolation that PPC is operating in isolation, but this is not the case, right? So a great example of this is when someone tells me that they have like a 60% conversion rate and they think that they're doing really good, like 60% conversion rate. Great. Um, and I think the issue is not that they think the issue is like, we need more traffic, but the reason why you would have a conversion rate like this on Amazon is almost definitely because you've got like really low scale on this product.
Meaning you've got very low traffic on this product. So that's how you could get this kind of a conversion rate is because you have very little traffic and this traffic is super, super targeted, but when you want to go high scale, right? So if you want to actually go high scale with the product and scale it up, the conversion rate is certainly going to come down. So our conversion rate is going to come crashing down. Uh, and that's just the nature of scale because when you scale, what happens, what do you need to do? Remember you're competing in a marketplace with other products, other sellers, and the most competitive product on several different fronts, like offer conversions, uh, but also like margins and things like how good the PPC systems are, how good the SEO, the organic optimization and the rankings are. That's the product.
They can spend the most on ads and make money and make the most money in the market. Because like we talked about in the last video, you can really go the farthest with these variables that cause you to make the most amount of money. You can have a low cost, like a good ACO T S and you can also have a high volume of sales. So going back to why the conversion rate goes down, certainly with high scale is because to scale, you need to go into broader and broader keywords and targeting. So you need to go broader. You need to go bigger, right? So, uh, while you might have a 60% conversion rate at low scale with very little traffic, um, even in PPC, like going after super, super targeted keywords and things, if you want to scale big, if you want more traffic, if you want more sales volume, you will need to go more broad.
You need to go into more saturated places. You need to go into more competitive places. Uh, so your conversion rates will appear to go down. The actual number will go down, even if the product is the same. So the only way what this means, right? Because as don't operate in isolation, right, you're not going to be able to scale your ads just because of the ads. You're the only way to scale your ads is with a great offer. Right? Great. So this goes back to the first video, great offer that converts well enough, and you have a great product as well. So I've done it here. Great offer plus, um, again, apologize for the horrible writing skills here, but the great, uh, product and a great offer. And that's how you can actually scale. If you don't have a great product, you don't have a great offer.
Then you're not going to be able to maintain conversions that are high enough to be able to capture more and more of the market and really grow your markets here and grow your arm, your sales, your sales volume at a low cost. If your product, if the offer isn't good enough, your conversions are going to come crashing down. Your ad costs are going to come flying up like your, uh, ACOS and everything. So you end up becoming basically unprofitable at some point, and you can't scale any further, right? So the only way to scale further, the only way to unlock greater scaling and break this barrier here there is to improve this, the offer plus product, which we already covered in the previous, uh, first video here in this free mini course. So now that you understand that, let's talk about what to do. How do we actually scale Amazon PPC?
Well, again, as you know, the reason ads can't scale is because the offer and the product isn't good enough. So it is a competition and you need to be very, very competitive. So the more competitive meaning the battery can make your product and your offer. The higher conversion rate is really so the conversion rate remains high. Even if you are high enough as you scale, and you can maintain profitability at high scale, then you can scale ads farther, right? So how do we make this happen? Well, there's a methodology here that is really important with most sellers do not understand. And there's basically two things you need to do to scale your ads. And of course you need to your PPC, right? You need to scale PPC. You need to scale your ads, right? You need to have more ads, spend more on the ads, go after to more targeting, more different types of ads.
You need to basically spend more on ads to scale at scale, be busy that's self-explanatory, but this is what most sellers don't understand. You also need to improve your offer, right? Improve offer plus product, right? So offer is like how you present what you're selling, how it converts and things like that. And the product is actual physical item. So this is what we talked about in the first video. If you haven't seen that already, you should definitely check that out. So this is how we scale ads. It's that simple. We need to scale the actual ads to the actual PPC, and we need to also improve the offer at plus product. So most sellers only try to do this, and then they reach a ceiling and they can't break past it, right? So they come up to the ceiling and just come back down. And of course, what happens is there's more competition that comes in and different things over time.
The product might erode like there's, um, new products, more exciting, all the is doing better. So this ceiling might actually come down as well. And your ads and the product goes downhill. That is what happens a lot. But to comforter, both have this like natural erosion when it comes to the lifecycle of the product, and also to break through this thing here, and actually we go above it. You need to improve the offer on the product. Because when you do that, the ceiling goes up the ceiling on how much you can spend on PPC how much revenue can generate through PPC at a profit, right? Or within an acceptable a cost goes up. So this means we actually cycle these two things. So what we do, so step a is to scale outs. And we go as far as we can. So we set basically, uh, a minimum profit threshold, or we call this like a target ACOS and we're monitoring, obviously what we've talked about before, like the money made and everything, but we set like a target ACOS.
So basically an ACOS, which we are okay with. And we will go all the way up to this equals with our ads and that's the limit. So we push out more ads. We expand with more campaigns, you have to optimize them. And as you see how far we go and we find, you know, we are looking to find this ceiling. And once we find this ceiling, we stop, you know, we don't wanna, we don't wanna go past it. We don't want to start losing money on ads. That's basically the limit, how far we can scale. And the reason this limit exists now comes right back to this. And I mean, go to face to face, beat, which is to improve offer plus product. So we keep our ads at the same level and we make them more and more efficient through optimization. So actually our, um, ACOTS, ACOS comes down, but we keep the same amount of sales, but our profit actually goes up.
And at the same time, we work on improving the offer and the product. So our conversion rates go up here. For example, our margins gross margin might go up and once we've completed this phase, we've done this, we've accomplished an improvement in these KPIs. Then we go back into phase A and we scale, and we can go farther, right? So the limit has gone up and the ceiling might go here, right? So we broke this one and now we're at this one. And once we find this ceiling, same thing again, you back off, we stopped trying to scale that. So let me just focus on making them more profitable, lowering the cost. And you come back into step B, phase B and we improve the offer and the product more conversion goes up, gross margin goes up, and then we go again. And once again, the ceiling goes up and this is how we scale.
This is how we cycle basically, um, basically scaling ads. So expansion and improving the actual offer. The root cause of ad performance which is then what we'd call sort of like refinement. So we get these other metrics that go up. So we're improving the ad metrics. And we do that focusing on that, let me, uh, stop once if it finds the ceiling and we go on, we improve the offer and the product metrics. And once we do that, we'd go back in and we can scale. That's further. That's how it works. This is how we can scale our product, our sales through PPC. So to sum it up because your product does not work in isolation as do not work in isolation, you're competing with other sellers with other products and your ads are not operating isolation that are connected to your offer your product.
You need to make your product more competitive to be able to scale the thing that unlocks of scale with any kind of paid advertising online is the offer. It's the product it's things like conversions and things, right? It's money mate, average order value is another thing we could add in here. These are the things that make ad scalable. This is what makes it possible to scale. You can have an okay, you can do an okay job and be at low scale, right? Even mid-scale. But the only way to achieve high scale high scale is to have something that's actually good, a good offer, good product, good metrics. Then you can scale and make a lot of money, money, mate. So that's how it works. And the way to do this is obviously through great systems and processes and specifically great systems and processes around your PPC. So your PPC systems with like, we've talked about SEO optimization for organic and the whole, the right things, plus great systems and processes for your offering product. So supply chain, product, physical item, and also the product strategy, how to really make the product convert well, when you've got great systems and processes around these things, that's what matters. If you can just get there working better and better and better and make it really, really good, then you can scale very far and make a lot of money. And that's how it works.
All right. You made it through the Amazon PPC course. You were finished with part three and by now I'm sure we can see there is a lot that goes into optimizing the Amazon product funnel really well. There's a lot of things that you need to get right for it to really work and for Amazon PPC to be really effective and get you great results and ultimately make you a lot of money and help you to grow and scale your business, uh, as a reliable systematic approach. And of course, we're limited by time in this free course, which I hope you've gotten great value from is helped. You see things more clearly, but there's a lot more where this came from. And we actually have these systems dialed into a T. We have it in full detail, laid out in full every single step, every single tool, every single template, every single SOP, everything we use to actually optimize and build a really good product funnels for products on Amazon, so how to really dial these things in, and then how to run PPC specifically exceptionally well, because there's obviously a lot that goes into doing the Amazon ads very well, like from a technical point of view, and actually being able to scale and do it at scale.
So we have those systems fully laid out, uh, and also everything to do with the SEO and the product itself. The whole thing, we know how to do it. We've done it time and time again. We've helped our clients do it time and time. Again, our clients are generating over 200 million per year on Amazon. So we know what we're doing. And we know these things work because they do work again. And again, if you get them right, and they can really transform your results on Amazon. So if you're interested in that, if you want more, if you want the proven systems and proven steps, the actual process is fully laid out for you. Then you can actually book a free call with me a 45 minute discovery call, and we'll just sit down, have a casual conversation on Zoom and I'll check out your business while you're doing your situation.
You tell me, and based on that, I'll let you know what I think. And if I think we can help you and if I think these systems will benefit you. And if so, how much they will benefit you. I can pretty much tell you exactly how much they're gonna benefit you financially and how quickly if you implement them. So if you want to do that, if you want to sit down with me and talk, uh, there's going to be a link below this video where you can go and book the call right now, and we'll talk very soon. So that's it for the Amazon PPC course. Again, I hope you enjoyed it. And if you want to have a call with me, the link is below the video and we can talk and see if I can help you to grow your business faster and make more money ultimately with your business. So that's it. Bye for now.